Can post redundancy commission be counted as tax free redundancy pay?
DominicOR
Forumite 2 Posts
I was made redundant last year. My employer agreed to 3 months redundancy payment, and agreed to pay commission on a number of deals which would not have been due until later if I had remained with them.
The redundancy amount was less than the tax free limit of 30k.
Since the commission was discretionary, and paid following my departure, with the redundancy, Am I entitled to count it as a 'redundancy' payment, and therefore part of the tax free limit?
Obviously this could be quite a big tax difference, so I don't want to get it wrong.
The redundancy amount was less than the tax free limit of 30k.
Since the commission was discretionary, and paid following my departure, with the redundancy, Am I entitled to count it as a 'redundancy' payment, and therefore part of the tax free limit?
Obviously this could be quite a big tax difference, so I don't want to get it wrong.
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and we will never, ever return.
But I wouldn't rely on guesses - ask HMRC.
Probably too late now as commission will be clearly earned income.
It could have been absorbed into a payoff as the package as long as the contract and commission scheme had clauses that did not make it contractual(even if discretionary) after you had left.